Utility rates remain low heading into fall

By Medicine Hat News on September 3, 2024.

The price of power and gas will continue to fall in Alberta in September, according to filings with the Alberta Utilities Commission for the month ahead, while the City of Medicine will announce current rates today.

Local gas rates are now set apart from default pricing calculations, but for those are set in relation to the forecast cost of major gas distributor.

The provincial regulated rate option for gas sees it fall to just 84.5-cents per gigajoule – the local rate in August was 91-cents based on actual cost to the city plus premium

Since late 2023, Medicine Hat has based its blanket power price on the wholesale rate for power in Alberta market – the price available to other retailers who then offer a market-up price to customers.

That price however has fallen below a locally set floor price of 7-cents per kilowatt hour for much of the summer. That remains in place for September under a new quarterly price-setting model, but additional fee may be adjusted slightly, to recover costs of provincial deferral program in early 2023.

The combined rate in August was 7.7-cents per kilowatt hour in Medicine Hat.

The average September default power price in Alberta will be 7.6-cents, plus the deferral fee.

All-in average rates for September range from 10.1-cents from Enmax to 11.7-cents from Epcor in the Edmonton service area.

Medicine Hat’s power price is next set to updated for October 1 for the last quarter of the year based on the current 12-month price forecast.